The years 2020 and 2021 were hallmark years for functional and fortified food and drinks in Thailand. Even as the pandemic concerns dissipate, the mindful consumption trend is strongly influencing the food and drink choices of Thai youth. Better-for-you drinks are thereby in vogue in Thailand. Beverage manufacturers vying to launch products with less sugar, fat, and calories in light of the proposed sugar tax hike in 2023. Health and wellness (H&W) trends will thereby reshape the Thailand beverages market, which is forecast to surge by a value compound annual growth rate (CAGR) of 7.4% over 2022–27*, according to GlobalData, a leading data and analytics company.
Tim Hill, Key Account Director at GlobalData Singapore, comments: “The COVID-19 outbreak triggered the “vitamins in everything” trend in Thailand. Despite the pandemic impact waning, H&W trends are strongly influencing consumers’ beverage choices. Health- and image-conscious Thai youth are growing increasingly mindful of their fat, calorie, and sugar intake. To reduce their risk of lifestyle diseases, such as diabetes and obesity, consumers are opting for food and drinks with less of these ‘food villains’. This ties in with GlobalData’s 2023 survey, wherein 56% of Thai respondents said they associate low-fat products with a healthy lifestyle**. An additional, 53% of Thai respondents in the same survey said the same for low-sugar products, and 45% for low-calorie products**.”
Bobby Verghese, Consumer Analyst at GlobalData, notes: “Beverage companies have responded to this trend by stepping up research and development on better-for-you refreshments. Given that colas have come under fire in recent years for their empty calories, it is no surprise that carbonates makers are spearheading this trend to stem the consumer shift to other soft drinks categories. For instance, in April 2023, market leader Coca-Cola rolled out its OOHA flavored soda positioned as a “zero guilt” drink with an eye-catching “0 sugar, 0 calories, 0 fat” tagline. Notably, while low-calorie brands and labels account for less than a tenth of the Thai carbonates market, the segment’s value sales surged by 20% CAGR over 2020–22*.”
Hill remarks: “While iced/RTD tea drinks were earlier perceived as healthier alternatives to sugary colas, the sugar tax levy in 2017 exposed many products with high sugar load. Given the proposed sugar tax hike, iced/RTD tea drink makers are launching low-sugar variants, such as Suntory PepsiCo’s new TEA+ Oolong Honey Lemon, which is claimed to contain only 4.6g of sugar per 100ml. The sports drinks and energy drinks categories are also set for a similar shakeup, as evident from the TCP Group releasing its ‘Sponsor Go 0% Sugar’ sports drink in May 2023. Not to be left behind, alcoholic beverage makers are also tapping this trend, with for instance, Anheuser-Busch unveiling its ‘Bam Bam!’ sparkling alcohol brand with 4% ABV and low in calorie/ sugar recipe.”
Verghese adds: “Similarly, dairy and dairy alternatives drinks are also keen on tapping the H&W beverages trend to dispel the public notion that their products can cause body weight gain. This is evident from recent launches, such as Lactasoy Chocolate Soy Milk, which is claimed to have 26% less sugar; Green Spot’s Vitamilk soy milk, which is claimed to contain 50% less sugar; and the TH Group’s new TH true Oat milk, which is claimed to be free from added sugar. In 2022, the leading Thai instant coffee brand, Khao Shong broke new ground in the hot drinks sector with a three-in-one coffee mix powder that reportedly contained 40% less sugar than its regular variants.”
Hill concludes: “Given that young consumers are paying more attention to their health and diets, the demand for food and drinks with less sugar, calorie, and fat can only accelerate in the coming years. The proposed sugar tax hike will further accelerate the development of novel better-for-you products in Thailand. Across the Asia-Pacific, “better-for-you” is fast becoming a mainstream trend that beverage brands and private labels can ill afford to ignore if they want to build a loyal following among the young Millennials and Gen Z cohorts.”
* GlobalData Consumer Intelligence Center – Market Analyzers, accessed in May 2023
** GlobalData Q1 2023 Consumer Survey – Thailand, with 508 respondents, published in May 2023
